Why the DroneShield (ASX:DRO) share price is up 3% today

The defence company’s shares are on the move today…
The post Why the DroneShield (ASX:DRO) share price is up 3% today appeared first on The Motley Fool Australia. –

The DroneShield Ltd (ASX: DRO) share price is pushing higher during afternoon trade following a business update from the company.

At the time of writing, the drone technology company’s shares are swapping hands for 17 cents, up 3.03%.

What did DroneShield announce?

In its statement to the ASX, DroneShield advised it recorded $7.4 million in customer receipts for the second quarter of 2021. It’s an all-time record for the company, despite COVID-19 continuing to impact business performance.

Over the first half of FY21, DroneShield achieved $9.1 million in customer sales, up 600% over the prior corresponding period.

The diversity in its quarterly cash receipts primarily came from Australia, the United States, and Middle Eastern customers. This consisted of payments across multiple product lines such as DroneShield’s $3.8 million contract with the Australian Department of Defence. The first payment of $1.9 million was received last month for a 2-year R&D contract in the Electronic Warfare/Signals Intelligence arena.

In addition, DroneShield is actively engaging in its US$50 million contract with a Middle Eastern customer. However, details remain sketchy as to who the deal is with and what it involves.

The company noted it has more than $200 million in its sales pipeline across the globe. This is a relatively small fraction of the $6 billion addressable market for counter-drone, electronic warfare and signals intelligence products.

Despite a substantial inventory investment of $5 million, DroneShield declared a healthy cash balance of $14.2 million, with no debt.

About the DroneShield share price

Over the last 12 months, the DroneShield share price has jumped by more than 54% but remains flat in 2021. The company’s shares reached a 52-week high of 25 cents in September last year.

At today’s price, DroneShield presides a market capitalisation of around $67 million, with close to 394 million shares outstanding.

The post Why the DroneShield (ASX:DRO) share price is up 3% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in DroneShield right now?

Before you consider DroneShield, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DroneShield wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why the Life360 (ASX:360) share price just hit a new record high
Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut
Galan Lithium (ASX:GLN) share price surges to record on positive results
Why this sector is lifting the ASX 200 higher today

Time is money. But wealth is the result of time…

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended DroneShield Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!